Grey County Council has received an update on development charges, with staff recommending work begin on a new background study and updated by-laws to guide the county’s growth-related funding into 2027.
The report, presented by Director of Planning Scott Taylor and Mary Lou Spicer, notes that the county has retained Hemson Consulting Limited to prepare the new Development Charges (DC) Background Study and by-laws. The current DC by-laws, which cover roads and general services, are set to expire on December 31, 2026.
County staff are recommending that work commence on updating the DC Background Study and bylaws, but that the final decisions be carried over into 2027. Staff explain that this approach allows for consideration of upcoming changes, including proposed urban road exchanges, the municipal election in October 2026, and potential changes to the provincial Development Charges Act.
In order to ensure there is no gap in funding before the new by-laws are in place, staff are also recommending that by-laws be prepared to extend the current County Development Charges By-laws 5127-22 and 5128-22.
“The collection of development charges is a critical financing tool for municipalities to help fund growth-related costs,” the report stated.
Hemson Consulting, which has prepared the county’s last four DC Background Studies and by-laws and is currently finalizing the County’s Growth Management Strategy, will carry out the work under an existing workplan. Staff caution that the timeline is ambitious and could be affected by unforeseen challenges. However, deferring final approvals into 2027 would allow the Transportation Services department to provide additional recommendations on the capital needs of newly uploaded roads and determine how these costs fit within the county’s capital plan.
Staff also note that extending the life of the current by-laws is permitted under Bill 185, Cutting Red Tape to Build More Homes Act, 2024. The legislation allows municipalities to extend DC by-laws from five years to ten years without a full Background Study or a new public meeting, provided no other changes are made. Extending the life of DC by-laws is not appealable, the report added.
The report outlines that the 2027 DC rates would be indexed versions of the current 2026 rates rather than entirely new rates. Staff emphasize that this update will provide important guidance for the incoming council, serving as both a decision point and an educational opportunity on municipal financing and development charges.
County staff will take reports and discussions on the DC project directly to the Committee of the Whole, rather than establishing a new subcommittee, following the recent dissolution of the county’s Budget and Finance Committee. The project is being funded largely from collected development charges. It remains within the approved 2026 budget, though some funds may be carried over into 2027 to accommodate additional working sessions and education for the incoming council.
